Bitcoin’s Price Value Dropped by 17% Causing Liquidations worth $5 Billion

Bitcoin’s price plummeted below $50,000, causing mass liquidations and panic in the crypto market. Currently, Bitcoin stands at $48,317 with a market cap of about $900 billion. Meanwhile, some traders believe the market to be bullish despite the price fall.

Why did Liquidations Happen?

For the past few months, the crypto market and Bitcoin was immensely crowded. Corporations were investing heavily, and the futures market was highly over-leveraged. This was a sensitive situation in which a minor transaction or monetary movement would cause a mass liquidation, which the crypto market had experienced.

Analytics firm Santiment found out that a bull transaction happened, which drag the price value downward. The transaction includes transferring 2700 BTC. This movement of Bitcoin in large amount occurred just before the drop. According to the analysts, Bitcoin’s correction was initiated by a huge inflow spike. It was also revealed that the same BTC address was responsible for the movement of 2,000 Bitcoin last March. This particular address, in total, was responsible for 91,935 BTC movement, which accounted for 73 transactions in one year. The data further conveyed that $91,935 worth of Bitcoin moved away in minutes after each import.

Is the Crypto Market Still Bullish?

Even when Bitcoin was dropping, the funding rate of the futures was around 0.15%. This trend explained that over-leveraged investors and buyers were trying to benefit from each dip, hence, saturating the crypto market. But this also caused the market to remain heated even after the correction.

Byzantine General, a trader, believed this trend to be healthy and called it a “coordinated shakeout”. The General said that this drop is not concerning as the top coin did not drop abnormally. The trader further pointed out the big chunk of buyers interested and in line to buy Bitcoin and utilize the opportunity the dip created. The pseudonymous trader believed that these signs suggest the market to be bullish.

It is crucial for premium cryptocurrency to not fall below the $45k mark. In that case, the chances of a correction are relatively higher.

 Currently, Bitcoin is trading at $47,598 after decreasing by more than 11% in the past 24-hours.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related

Facebook CEO Hinting at Adding Bitcoin to Balance Sheet

Mark Zuckerberg, CEO of Facebook, recently posted pictures of a few goats on his Facebook page. However, these pictures have an element that made them go viral within the crypto community and start a debate about the possible affiliation with Bitcoin. In the picture, one of the goats is named Bitcoin. Bitcoiners and crypto enthusiasts […]

Ubisoft has Selected a Blockchain Setup for its Entrepreneur’s Lab

Ubisoft has been putting out different seasons for their entrepreneur’s lab where they invite young and artistic startups to explore the full extent of the company’s technological resources, sharing the different ideas and basking in the light of developing new projects and tactics with each other. This has been taking place for almost five seasons, […]

Ethereum Sets a New All-time High by Touching the $3800

When Ethereum started touching the $3000, there were imminent talks regarding this cryptocurrency ending up with a bullish run that is going to take its price-performance charts over the roof. As it happens, these were not talks but an actual scenario Ethereum seems to be going through at the moment. Ethereum has only reached $3800 […]

Elon Musk Believes that Dogecoin is his Private Stimulus for People

Dogecoin is a subject that is not hidden from people having a specific interest in the crypto market. This is a meme cryptocurrency that came into being purely for entertainment purposes, as the developer claims it, kind of on life support with minimal hope of pulling through, but then something marvelous happens, and it gets […]